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DoD Superior Supplier Incentive Program SSIP

As part of the DoD Superior Supplier Incentive Program (SSIP), the US Army, Department of the Navy, US Air Force and DLA recently announced their superior suppliers for 2015. The results for each organization can be found at:  US Army  Department of the Navy US Air Force Defense Logistics Agency According to the Performance of the Defense Acquisition System: 2015 Annual Report, dated September 16, 2015 (page 99), "as part of BBP, the three Military Departments and the Defense Logistics Agency (DLA) each established a Superior Supplier Incentive Program (SSIP) to incentivize contractor performance by recognizing the contractors that provide the greatest value to the DoD through superior performance and by informing those who perform below average. The basis for SSIP designations are contract performance assessments reported by the PM (or equivalent) to CPARS. Each assessment rates the quality, schedule, cost control, management, utilization of small businesses, regulatory compliance, and other optional aspects of the contractor’s performance on a specific contract for a specified period. The contractor is allowed to review and comment on each assessment before it is finalized. This program is still evolving. The Services will meet with Tier 1 suppliers to discuss ways to reduce nonproduction-related requirements in existing contracts. These discussions may lead to the removal of non-value added procedures or requirements, which may ultimately save money for both contractors and taxpayers.   There are some differences between the methods adopted by each Component. The Navy evaluated the top 30 corporations in the first year based on the firms’ contract obligations at the corporate level. Corporations then were evaluated at the company, operating division, or business-unit level. This resulted of the evaluation of 80 business units, from which 30 were selected for ranking in 2014. The Air Force and Army used data from USAspending.gov to find the 25 corporations with the highest contract obligations in their respective departments over the last 3 years. Like the Navy, the Air Force and the Army then evaluated performance at the business-unit level. DLA selected the top-40 performers from the 153 largest (in terms of contracts) suppliers of parts and commodities over the last 2 years. The three Services use the last 3 years of performance data from CPARS to rate the largest firms doing business with each Service. The 3-year periods results are weighted 3,2,1 in the scoring with the most recent rated highest. The DLA’s top 40 consists of the top performers in CPARS over the last 2 years and several companies that partnered with DLA on considerable cost-reduction initiatives. The Services are working to harmonize their methodologies. Companies with primarily service-oriented contracts were not considered by DLA at this time. Based on this analysis, the top suppliers are sorted into three tiers, with only alphabetical ordering within each tier. The very top-performing business units are in Tier 1 or Gold. The Tier 2 or Silver business units are the next highest performers. Finally, there are the Tier 3 or Bronze business unit performers." .

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DoD Superior Supplier Incentive Program SSIP
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